Investment Is Usually

question 48

Multiple Choice

Investment is usually

• A) more variable than consumption.
• B) less variable than consumption.
• C) as variable as consumption.
• D) It is hard to tell from the data whether investment is more or less variable than consumption.
• E) a larger component of the GNP than consumption.

---

Definitions:

Total Cost Function

A mathematical representation of the total expenses involved in production, including both fixed and variable costs, as a function of output level.

Input Prices

The costs associated with the purchase of the factors of production, including wages for labor, prices for raw materials, and capital costs.

Average Variable Cost

Average variable cost is the total variable cost divided by the quantity of output produced, showing the cost of producing each unit excluding fixed costs.

Short-Run Marginal Cost

The cost incurred by producing one additional unit of a product in the short term where at least one input is fixed.